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IMF inspectors have spent a week in Britain, meeting officials at the treasury and the Bank of England, and taking the temperature of the economy.

The report will also deliver the IMF's verdict on the newly-created Office for Budget Responsibility and its economic forecasts, monetary policy set by the Bank of England, and reforms of the financial system including the planned abolition of the Financial Services Authority.

The IMF is likely to sound the alarm over long-term issues such as the cost of pensions and healthcare for an ageing population.

In its latest quarterly World Economic Outlook in July, the IMF downgraded its forecasts for the British economy.

It said it expected GDP to grow by 2.1 per cent in 2011 rather than the 2.5 per cent it had predicted three months earlier. The downgrade was widely seen as a response to cuts outlined by Osborne in the emergency Budget in June.

But crucially for the Coalition, it did not predict a double-dip recession.

Miliband said yesterday that Osborne's proposed spending cuts were 'reckless'.

But Michael Fallon, deputy chairman of the Tory party and a senior figure on the Treasury Select Committee, said the Labour leader appeared 'very confused on the biggest issue facing us, which is the deficit'.

He said: 'He says he supports Alistair Darling's plans, but we know Alistair Darling wanted to increase VAT and he voted against VAT.

'When the really tough measures are put forward by the Coalition Government, he actually votes against them and he has made big spending pledges of his own - nearly £30billion of them - committing himself to a national care service and backing a new high-speed train network. All of that has got to be paid for.